08:33 AM EDT, 08/26/2025 (MT Newswires) -- Bank of Nova Scotia ( BNS ) reported third quarter results before market open on Tuesday.

TD Securities analyst Mario Mendonca said BNS beat EPS estimates significantly, primarily due to lower PCLs and "very strong" trading revenue.

"NIM was strong on lower funding costs, a key driver for BNS," Mendonca said in a note to clients.

"Credit remained favourable as impaired PCLs declined q/q and performing PCLs dropped materially as expected," the analyst said.

"CET1 was slightly better than expected, supporting the NCIB (3.2 Million share in quarter). We view this quarter favourably."

Mendonca maintained a Buy rating and $87 price target on BNS.

CIBC Capital Markets analyst Paul Holden said the results are "positive."

He maintained a Neutral rating and $90 price target on the stock.

"BNS reported a 9% beat relative to consensus and 6% relative to our estimate. Mostly a beat on higher trading revenue and lower PCLs," Holden said in a note to clients.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)